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Ether.Fi has proposed allocating 5% of its protocol revenue to buy back ETHFI tokens and reward stakers, aiming to enhance the token's utility and align user incentives with the platform's growth. This initiative will initially benefit tokenholders who have staked ETHFI for at least one month, with a decision expected by the end of the week following a tokenholder vote. The protocol, which has nearly $10 billion in total value locked, has generated around $60 million in revenue since its launch in 2023.
Liquid restaking is revolutionizing DeFi, with Total Value Locked (TVL) on Ethereum skyrocketing from $284 million to over $17 billion in 2024, driven by the demand for efficient use of staked tokens. While it offers higher returns and capital efficiency, risks such as price volatility and network vulnerabilities remain critical considerations for investors. Ether.fi leads the market with a 50% share, simplifying the restaking process and enhancing user engagement in the blockchain ecosystem.
Ethereum liquid restaking protocols experienced a staggering increase in total value locked (TVL), soaring from $284 million to $17.26 billion in 2024, marking a nearly 6,000% rise. This surge is driven by the growing utility of liquid restaking tokens (LRTs), which enhance capital efficiency in decentralized finance (DeFi).Ether.fi dominates the LRT market, holding over 50% of the TVL with $9.17 billion, attributed to its user-friendly restaking model that simplifies complex operations. However, the rise of LRTs also introduces risks, including price volatility and potential losses from network failures.
The Eigen Foundation has pledged 1% of its EIGEN token supply, valued at approximately $8 million, to the Protocol Guild, which supports Ethereum's core development. This commitment aims to enhance funding for projects and contributors within the Ethereum ecosystem, ensuring the sustainability of its decentralized infrastructure. With this donation, the Protocol Guild is nearing a total of $100 million in contributions, bolstering ongoing advancements in Ethereum technology.
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